Positive reaction to taper boosts bullish FIG

The FIG market was given an extra lift on Thursday — if it needed one — by the US Federal Reserve’s decision to taper its $85bn quantitative easing programme by $10bn on Wednesday, with bankers saying the market’s positive reaction to the announcement had banished fears that the bull run of the last couple of months could be derailed before the end of the year.

  • By Will Caiger-Smith
  • 19 Dec 2013
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Cash spreads were on average 1bp-2bp tighter in FIG, with periphery credits 3bp-5bp tighter. The iTraxx senior financials was 3bp tighter at 89bp, while the subordinated index was 4bp tighter at 144bp.

The timing of the announcement came as a surprise to most market participants, who had expected the Fed to wait until the New Year to taper. But the concept of tapering itself is nothing new, having first been mooted in May.

The FIG bond markets took Wednesday’s decision in their stride, said the head of syndicate at a London investment bank.

“The bond markets shrugged it off,” he said. “Overall this is a positive end to the year. It’s better than they could have hoped. You don’t want volatility, you want the market to absorb it. The shock announcement in May followed the worst three months this year in primary market conditions. That took till September to clear, when people started buying again.

“It’s very positive for FIG. We were cautious that something might happen towards the end of the year to correct us into the New Year, because the market has been tightening for so long. But today’s reaction to the taper crystallises credit levels, and we are bullish for the start of 2014.”

Bankers expect the first full week of January to be busy, despite the fact that some accounts will be out of play because of the Epiphany holiday on Monday January 6.

One issuer, which many market participants suspect to be a German bank, was planning to issue a capital deal before the end of the year but has postponed it until January, and Macquarie Bank this week completed a roadshow for a senior deal.

  • By Will Caiger-Smith
  • 19 Dec 2013

Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 HSBC 5,680.75 25 5.91%
2 Commerzbank Group 5,001.67 29 5.20%
3 UniCredit 4,986.06 37 5.19%
4 Credit Agricole CIB 4,573.35 20 4.76%
5 BNP Paribas 4,463.32 18 4.64%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Morgan Stanley 139,173.11 554 6.60%
2 JPMorgan 135,505.56 612 6.43%
3 Citi 127,910.15 757 6.07%
4 Goldman Sachs 125,520.43 675 5.95%
5 Bank of America Merrill Lynch 119,876.60 536 5.69%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Apr 2017
1 JPMorgan 104,210.95 417 10.23%
2 Citi 99,111.89 557 9.73%
3 Bank of America Merrill Lynch 94,929.57 429 9.32%
4 Morgan Stanley 89,025.14 390 8.74%
5 Goldman Sachs 85,770.72 496 8.42%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 09 May 2017
1 SG Corporate & Investment Banking 3,864.50 15 8.19%
2 LBBW 3,506.91 13 7.43%
3 Credit Agricole CIB 3,308.89 13 7.01%
4 BNP Paribas 2,845.56 10 6.03%
5 Commerzbank Group 2,832.12 11 6.00%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • 23 May 2017
1 HSBC 5,378.40 21 6.13%
2 Barclays 4,839.18 14 5.52%
3 Credit Suisse 3,558.82 15 4.06%
4 BNP Paribas 3,205.75 15 3.65%
5 Goldman Sachs 2,788.75 18 3.18%